Apple: stock underperforms after downgrade

(CercleFinance.com) - Apple shares are underperforming the US technology market on Friday on the New York Stock Exchange, after New Street Research downgraded its rating on the stock.


The company's shares were up just 0.2% half an hour into trading, compared with a 0.5% gain for the Nasdaq index.

In comments published in the morning, Pierre Ferragu, the leading New Street analyst, said he had downgraded his opinion on the stock to "sell", with a target price of 90 dollars, which represents downside potential of 28%.

For him, the "monster" demand from which the US group is currently benefiting from for its iPhone 12 is not likely to last.

New Street points out that the smartphone should in fact be the subject of near-record sales in the 2020/2021 financial year, making it the second most popular iPhone in history behind the iPhone 6.

However, the broker says it expects a less glorious future and anticipates the launch next year of an iPhone "12S" that will be strictly a minimum service and unlikely to unleash enthusiasm amongst the masses.

As a result, New Street only forecasts 180 to 200 million handset shipments over the next year, a far cry from the 230 million currently expected by the consensus.



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